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Delta Property Fund to apply for lifting of JSE suspension

The JSE suspended Delta’s shares on September 15 due to the withdrawal of the financial statements.Photo Supplied

The JSE suspended Delta’s shares on September 15 due to the withdrawal of the financial statements.Photo Supplied

Published Jun 2, 2021

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DELTA Property Fund said yesterday that it would approach the JSE to reinstate the trading of its shares following the re-issue of its 2020 financial statements and the publication of interim results.

This followed a six- month period to August 31 last year of significant changes for the group, including the appointment of new members to the board and the appointment of a new interim executive leadership team, as well as two independent forensic investigations into irregularities that resulted in the withdrawal and re-issue of the financial statements for the year ended February 29 last year said interim chief executive Bongi Masinga.

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The JSE suspended Delta’s shares on September 15 due to the withdrawal of the financial statements.

Masinga said despite corporate governance challenges and the weak economy, their R8.7 billion portfolio of offices, retail and industrial assets proved defensive, supported by its sovereign underpin.

Delta's distributable income per share amounts to 16.3 cents for the six months to August 31, 2020, versus 30.33 cents the previous year. An interim dividend was not declared following the performance of the solvency and liquidity test – the interim dividend in 2019 was 12.19 cents per share.

Revenue for the six months fell 5.5 percent to R724.7m, largely affected by increased vacancies and reversion on leases renewed. Net asset value per share was down 23.9 percent to 540 cents.

Collections averaged 80.8 percent with relatively minimal rental relief of R11m granted to support smaller retail tenants.

Administrative expenses increased 15 percent, mainly as a result of increased legal expenses and the consolidation of the group’s asset manager, DPAM, which resulted in the elimination of the asset management fee and concomitant replacement with the salary expenses as well as related accounting expenses.

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Operating expenses also increased due to higher assessment rates, utility costs, security costs and increased provisions for bad debts through the pandemic.

Finance costs fell 20.2 percent due to the repo rate reductions. Dividends of R13.8m were received from the investment in Grit.

Loan to value, although high, fell to 54.1 percent from 55.7 percent, benefiting from cash generated by operations and repayment of debt facilities.

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Disposals together with capital expenditure was envisaged to further improve LTV in the short to medium term, with the long-term strategy still targeting an LTV of below 40 percent.

Two properties were disposed of during the period for R40m.

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